Mumbai: The Federal Bank reported a 15.9 percent year-on-year rise in consolidated net profit to Rs 1,094 crore in the quarter ended December 31, 2025 (Q3 FY26), supported by steady income growth and lower provisioning costs. The bank’s total income increased to Rs 8,503 crore, compared with Rs 8,321 crore in Q2 FY26 and Rs 8,196 crore in the year-ago quarter, reflecting sustained momentum across core lending operations.
Sequentially, profit after tax rose 10.3 percent from Rs 992 crore in Q2 FY26, while operating profit expanded 6.3 percent quarter-on-quarter to Rs 1,882 crore. Interest income remained stable at Rs 7,360 crore during the quarter, aided by consistent growth in advances, while other income increased to Rs 1,143 crore, contributing to overall revenue resilience.
Sequential growth builds on operating leverage
Operating expenses for the quarter stood at Rs 2,220 crore, marginally higher than Rs 2,122 crore in the previous quarter, reflecting controlled cost expansion amid business growth. Importantly, provisions declined 5.8 percent sequentially to Rs 374 crore, easing pressure on the bottom line. As a result, profit before tax improved to Rs 1,507 crore in Q3 FY26 from Rs 1,373 crore in Q2 FY26.
Earnings per share (EPS) rose to Rs 4.45 in Q3 FY26, up from Rs 4.04 in the preceding quarter and Rs 3.85 in Q3 FY25, underscoring the bank’s improving profitability trajectory.
Associate contribution and group performance
During the quarter, the bank recorded a Rs 146 lakh share of profit from associates, while minority interest stood at Rs 31 crore. After accounting for these, consolidated net profit attributable to shareholders reached Rs 1,094 crore, compared with Rs 992 crore in Q2 FY26 and Rs 944 crore a year earlier.
Nine-month performance shows stability
For the nine months ended December 31, 2025, the bank reported consolidated net profit of Rs 3,004 crore, broadly stable compared with Rs 3,168 crore in the corresponding period last year. Total income for the nine-month period stood at Rs 25,140 crore, reflecting balanced growth across interest and fee-based income streams.
Disclaimer: This news is based on unaudited financial results released by the company. Figures are subject to revision upon audit and should not be considered as final or audited financial statements.
